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Subheading goes here

Restricted Bidding

Restricted tendering is a procurement method that limits the request for tenders to a select number of suppliers, contractors or service providers. This method of procurement is also called: Limited Bidding and Selective Tendering.

Although considered a competitive procurement method, competition is limited to only firms shortlisted or invited by the procuring entity.

A process should be in place for arriving at the number and specific firms that will be invited; that number however is dependent on the stipulations of the public procurement legal framework.

Any decision to use the Restricted Tendering procurement method must conform to the policies and procedures governing the procurement system

A basic characteristic of this method is that competition is confined to a certain number of firms either because only a few firms are qualified to fulfill the specific type of requirement, or certain conditions warrant the use of a limited number of firms in order to reduce the time and cost of the selection process ..

Selection Procedure for contractor

Pre Qualification Procedure

One Stage: In one stage pre qualification criteria is mentioned in notice inviting tender

Two Stage: Initial pre qualification is done for contractor before they are given invitation to tender

Pre selected contractors from maintained contractor's list by client’s procurement agency, consultant or works department

Restricted Tenders (CPWD Manual 2014)

Cases where restricted tenders can be resorted:

Restricted tenders of any value can be called in the following cases with the prior

approval of the DG, CPWD.

The work is required to be executed with very great speed, and not all

contractors are in a position to generate.

(ii) The work is of special nature requiring specialised equipment, which is not

likely to be available with all contractors.

(iii) Where the work is of secret nature and public announcement

is not desirable.

(iv) Where the list of pre-qualified contractors is required to be shortened to a
(v) suitable limited number.

Maintenance of VIP residences/important buildings as decided

by Chief Engineer concerned. (vi) Other exigencies of the work so demand.

Selective Tendering : Single Stage

Selected bidders (typically 4-7) are asked to sub

The client

evaluate the tenders and,


accepted, a contract will be formed between the client and the finally selected contractor.


Reduces time, effort & cost of tendering.

Less possibility of any firm quoting unrealistic price.

Fair Competition (not as high as open tendering).


Few good contractor may not get the chance. Higher prices due to big contractors & limited competition.

Selective Tendering : Two Stage

The client invites expression of interest (EOI) fr qualified and experienced contractors.

The EOI generally calls for details for the contracto and capabilities in handling projects of similar size complexity as that of proposed project

The client evaluates the submitted EOI & then ask the selected contractor to submit complete bids.

These bids are evaluated & after negotiation, client will enter into contract with the preferred contractor.

Selective Tendering :




Combines the benefits of open & single stage selec

Combined strength of competition & negotiation.

Early involvement of contractor. Parallel design-


Good competition between capable contractors


The most preferred contractor may fail to negotiate

with competitive prices. Negotiation could drag on & increase complexity.